Nearly 40% of today’s CRE workforce—over one million professionals—will reach retirement age within the next decade—compared to just 23% across all industries.
Deloitte, 2024.
The U.S. commercial real estate (CRE) industry is on the verge of a major demographic shift.
Nearly 40% of today’s CRE workforce—over one million professionals—will reach retirement age within the next decade, compared to only 23% across all industries. Even more concerning? 59% of today’s CRE executives—over 761,000 leaders—are set to retire. (Deloitte, 2024)
The median age of CRE professionals is 49, making it the oldest workforce in the financial services sector. By contrast, the median age is 44 in insurance and 43.5 in banking. Additionally, 13% of all CRE employees are already 65 or older, compared to just 5% in banking and insurance. (Deloitte, 2024)
The question is: Are CRE firms prepared to fill these leadership gaps?
For too many companies, the answer is no. Firms have historically relied on tenured professionals staying longer, but that era is ending. Without a structured approach to succession planning, leadership development, and knowledge transfer, many companies risk falling behind in an increasingly competitive market.
Failing to act now will create significant business risks for CRE firms.
Here’s what’s at stake:
By 2033, there will be only 28,000 qualified mid-career professionals available to fill 761,000 vacating leadership roles. This represents the tightest talent gap in any financial services sector. (Deloitte, 2024)
A staggering 25% of today’s senior CRE leaders are already over 65. Many of these professionals hold deep industry knowledge, client relationships, and deal-making experience that younger employees have not yet acquired. Without a structured mentorship and knowledge-sharing strategy, critical expertise could be permanently lost.
Nearly 50% of CEO succession plans in CRE start only after an executive departs—a reactive approach that can disrupt business operations and weaken investor confidence. It takes an average of 18 months to assess whether a leadership hire was successful, creating unnecessary risk in an industry where relationships and execution matter. (Deloitte, 2024)
Firms without a proactive leadership strategy will struggle to compete with organizations that prioritize leadership development as a core business investment. Companies that fail to build strong internal talent pipelines will become overly reliant on external hiring—an expensive, unpredictable, and unsustainable strategy.
Labor shortages and leadership gaps can lead to:
- Project delays due to a lack of experienced dealmakers and asset managers.
- Decreased transaction volume from disruption in brokerage and leasing teams.
- Higher recruitment costs as firms compete for a shrinking pool of qualified executives.
- Increased risk exposure from gaps in leadership succession and governance.
The good news? Companies that act now will secure long-term stability, innovation, and business success.
Companies with structured leadership programs see 35% higher revenue growth than those without. (Harvard Business Review, 2022)
Here’s how CRE firms can proactively prepare:
Invest in Leadership Development Programs
Companies with structured leadership programs see 35% higher revenue growth and outperform firms without them. (Harvard Business Review, 2022)
Strengthen Internal Talent Pipelines
Investing in internal talent development reduces reliance on expensive external recruitment and ensures leadership continuity. Studies show that companies that promote from within see higher retention and stronger long-term performance.
Transfer Knowledge -- Strategically
A formal mentorship program pairing senior executives with high-potential employees can preserve institutional knowledge, ensure smooth leadership transitions, and accelerate career progression.
Prioritize Succession Planning Now
Effective leadership succession planning ensures business continuity, reduces turnover, and prepares high-potential employees for executive roles before retirements create gaps.
The retirement cliff isn’t a future problem—it’s happening now. CRE firms that invest in leadership development today will be the ones that dominate the industry tomorrow.
If you'd like to discuss concrete -- and impactful -- strategies to address the retirement cliff within your organization and ensure you're developing a robust leadership pipeline for tomorrow, get in touch. That's exactly what we do.
